Assume the partnership of Howell, Madrid and Waldrop has been in existence for a number of years. Howell decides to withdraw from the partnership when the partners’ capital balances are as follows:
Partner: …………….. Capital Balance: …………Profit/Loss Ratio
Howell ………………………. $60,000 ………………………………4
Madrid ……………………… 15,000 ……………………………….3
Waldrop ……………………. 25,000 [...]

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